Apria Posts $70-Million Loss, Seeks Suitors

Apria Healthcare Group Inc. posted a loss of nearly $70 million for the second quarter and said Tuesday that about 40 parties have expressed an interest in the company, a major provider of home health care services.

Costa Mesa-based Apria, which has been plagued by collection problems and unprofitable business ventures in a rapidly changing industry, hired an investment bank a month ago to help it explore a buyout and other alternatives.

It’s too early to say if the inquiries will result in any offers, said spokeswoman Sheree Aronson. The company is the product of a merger two years ago of two Orange County rivals, Costa Mesa-based Abbey Healthcare Group and Homedco Group of Fountain Valley.

In the second quarter, Apria took $98 million in charges, including a $55-million provision for bad debt and $23 million in charges from shedding unprofitable business lines. Apria had announced in June that it would be recording hefty write-offs.

The company said Tuesday that it is on track with its plan to phase out lower-margin operations and focus on its main businesses, providing respiratory services, home infusion therapy and home medical equipment.

For the second quarter, Apria said it lost $69.9 million, or $1.36 a share, compared with a profit of $21.9 million, or 42 cents a share, a year ago. Revenue fell to $295.7 million from $306.6 million.

The company said it lost $50.6 million, or 99 cents a share, for the first six months, compared with a profit of $42.2 million, or 81 cents a share, for the same period last year. Revenue increased to $609.6 million from $601.9 million.

Apria stock fell 13 cents to $16.63 a share Tuesday in trading on the New York Stock Exchange.